CNY Falls To Near Two-Week Low As Offshore Yuan Also Weakens

The onshore yuan closed at 6.7134 per dollar, down 63 pips from the previous day's 4:30 p.m. close and its weakest level since September 3, according to ETNet. It traded between 6.7081 and 6.7150 during the session. The offshore yuan was down 47 pips at 6.7143. The daily midpoint was set at 6.7670, up 28 pips and the fifth straight rise, marking its highest level since February 3, 2023 and coming in about 620 pips weaker than market estimates. Market participants said Middle East tensions, firmer oil prices and expectations of further Federal Reserve tightening supported the dollar, while one foreign bank trader said the yuan is likely to keep fluctuating with a slight upward bias.